Byju's Rights Issue: Third Member Likely To Be Added To NCLT Bench

The NCLT referred on Wednesday the case of the Byju's rights issue to the president of the tribunal to appoint a third member to the deciding bench.

This was done because the two-member bench of the National Company Law Tribunal had differing opinions on the case. 

Last week, the Bengaluru bench of the tribunal refused to stop Byju's extraordinary general meeting. This meeting was called by the company to increase its authorised capital, which is necessary to implement the rights issue.

In late February, four investors filed a case with the NCLT against Byju's claiming mismanagement.  The plea targets 12 entities and individuals, including Byju's founder Byju Ravindran, his wife Divya Gokulnath and his brother Riju Raveendran, according to the information available on the NCLT's website.

It was the argument of the investors in the last hearing that for now EGM should be halted as the tribunal should first examine the case.